September 21, 2022 (Source) — Auxico Resources Canada Inc. (CSE: AUAG) is pleased to announce the successful execution of the Company’s third and fourth trades of a cumulative 432 tonnes of rare earth concentrates (monazite sands) from the Democratic Republic of the Congo (“DRC”). The Company sold a total of 720 tonnes of monazite since April of this year, including the latest trading operations, representing a total provisional value of US$ 3.8 Million As per the signed sales agency agreement with Central America Nickel (“CAN”), Auxico will retain a commission equal to 15% of the sales price. Please see below the highlights of the latest trade operations from the DRC:
- The material from the third and fourth trades were sold for a total provisional value of US$ 2.1 Million. A total of US$ 1.1 Million has been paid, while the balance will be settled upon delivery of relevant contractual documents and the material arriving at the final destination.
- Initial testing on samples of the material indicated an average grade of 14.01% Neodymium, and a ~60% total rare earth oxide content (TREO). Samples of the material will be analyzed by SGS South Africa, and the results are expected within the next 10 days.
- The Company’s objective is to increase the export to 1,000 tonnes per month in the next quarter. At current market prices of US$6,000 per tonne, this would represent a yearly sale value of ~US$ 72 million, of which Auxico will retain a 15% commission.
- The rare earth concentrates contained in the non-radioactive monazite sands are purchased from various cooperatives in the province of North Kivu, DRC.
Frederick Kozak, CEO and President of Auxico commented: “We are very pleased to see the latest trades of rare earth concentrates being finalized, which further validates that the rare earth sale operations from the DRC are a sustainable source of revenue for the Company. The project has one of the highest TREO grades of any developing rare earth project hosted in monazite sands and ready for direct shipping without prior concentration, which positions Auxico as a leader in the rare earths export market. The Company anticipates the sale of monazite to ramp-up to 1,000 tonnes per month by the end of 2022, and it continually works to ensure operations in the DRC are ethically sourced and with full traceability.”
Auxico controls a total of 1,482 hectares in the province of Vichada, Colombia, where the Company made discoveries of high-grade concentrates with total rare earth oxide content exceeding 55%. The Company is in the process of obtaining the environmental and exploitation permits.
In addition, Auxico has a joint venture agreement for the Massangana tin tailings project located in the province of Rondônia, Brazil, where the Company intends to build a 2,500 tonne per day processing facility that is projected to produce on a yearly basis 37,500 tonnes of monazite, 6,000 tonnes of cassiterite, 90,000 tonnes of ilmenite and 13,500 tonnes of columbite. A recent economic forecast commissioned by the Company and prepared by the Brazilian independent company PrimeStar has projected yearly revenues of US$300 million.
This news release was reviewed and approved by Joel Scodnick, P.Geo., an independent consultant to Auxico, in his capacity as a Qualified Person (QP), as defined by National Instrument 43-101.
Disclaimer – The production estimates at Massangana are based on a conceptual model, and therefore the annual forecast of tonnes for all of the above-mentioned minerals do not comply with NI 43-101.
About Auxico Resources Canada Inc.
Auxico Resources Canada Inc. (“Auxico”) is a Canadian company that was founded in 2014 and based in Montreal, trading on the Canadian Stock Exchange (CSE) under symbol AUAG. Auxico is engaged in the acquisition, exploration and development of mineral properties in Colombia, Brazil, Mexico, Bolivia and the Democratic Republic of the Congo.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and President, Auxico Resources Canada Inc.
Cell: +1 403 606 3165
Chairman, Auxico Resources Canada Inc.
Cell: +1 514 296 1641
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.
SOURCE Auxico Resources Canada Inc.
For further information: Pierre Gauthier, CEO, Auxico Resources Canada Inc., [email protected], Cell: +1 514 299 0881; Mark Billings, President, Auxico Resources Canada Inc., [email protected], Cell: +1 514 296 1641